tag:econsultancy.com,2008:/topics/digital-strategy Latest Digital Strategy content from Econsultancy 2016-08-25T14:24:00+01:00 tag:econsultancy.com,2008:BlogPost/68215 2016-08-25T14:24:00+01:00 2016-08-25T14:24:00+01:00 Are regulations impeding financial services innovation? Patricio Robles <p>As <a href="http://www.ft.com/cms/s/0/66c75f74-6790-11e6-ae5b-a7cc5dd5a28c.html">detailed by</a> The Financial Times, BBVA is asking the European Commission to make changes to the bonus cap rules, which apply to employees who are "material risk takers" or earn more than €500,000 per annum.</p> <p>BBVA says that the bonus cap rules are making it difficult to compete and innovate, and that they should be amended.</p> <p>Specifically, BBVA would like to see that they're not applied to technology specialists, which the bank notes have seen their compensation increase but who don't expose the bank to the type of risks traders do.</p> <p>"In some cases we compete against US banks or tech companies on acquisitions. Their bonuses are not capped, so we may lose out," BBVA's digital M&amp;A chief, Juan López Carretero, told the FT.</p> <blockquote> <p>If you can design an app so a payment is done in two clicks instead of eight clicks that is valuable but it isn’t putting the bank at risk.</p> </blockquote> <p>BBVA is considered one of the more tech-friendly large banks.</p> <p>It <a href="https://www.bbva.com/en/news/economy/corporate/finance/bbva-acquires-simple-to-accelerate-digital-banking-expansion/">acquired Simple</a>, a US banking startup, for $117m in 2014, <a href="https://www.bbva.com/en/news/general/bbva-acquires-finnish-banking-start-holvi/">and Finnish business banking startup Holvi</a> in March. </p> <p>BBVA has invested in a number of financial services startups, including <a href="http://www.ft.com/cms/s/0/b71ad596-91f3-11e5-94e6-c5413829caa5.html">UK mobile bank Atom</a>, and earlier this year it <a href="http://www.americanbanker.com/news/bank-technology/whats-behind-restructuring-of-bbvas-fintech-venture-fund-1079319-1.html">created an independent venture firm</a>, Propel Venture Partners, to "invest in technology-driven companies that are Rethinking and Rebuilding financial services."</p> <p>With more and more <a href="https://econsultancy.com/blog/67919-five-fintech-start-ups-aiming-to-replace-traditional-banking">startups looking to disrupt traditional banking</a>, rules that make it more difficult for banks like BBVA to recruit top tech talent or acquire promising young companies would indeed appear to be a legitimate concern.</p> <p>But big banks shouldn't fall into the trap of believing that the ability to open their wallets more freely is the key to thwarting would-be disruptors and spurring innovation.</p> <p><strong>First,</strong> in the battle for talent, <a href="https://techcrunch.com/2015/06/25/a-closer-look-at-the-silicon-valley-vs-wall-street-talent-war/">it's not all about money</a>.</p> <p>Many of those who are choosing Silicon Valley over Wall Street and The City aren't doing so just because they see the opportunity to make more money.</p> <p>Big banks are seen by many as stodgy and bureaucratic, making them less attractive for job seekers looking for opportunities that will give them the ability to do interesting work and make an impact.</p> <p>Additionally, the financial services industry's reputation hit post-2008 hasn't helped matters.  </p> <p><strong>Second,</strong> as far as acquisitions and partnerships are concerned, banks will need to prove that they can integrate with the upstarts they acquire and partner with.</p> <p>BBVA appears to be on the right track in this regard <a href="https://www.finextra.com/newsarticle/28693/simple-to-move-customer-accounts-to-bbva-compass-platform">thanks to investment in APIs</a>, but it's still very early in the game and it's not clear that large financial institutions will be able to acquire or partner their way to success.</p> <h3>Regulation to the rescue?</h3> <p>Ironically, regulation might soon provide some relief for banks under attack from fintechs.</p> <p>Their rapid rise has not gone unnoticed by regulators and it's possible that fintech upstarts will soon find themselves subject to much greater scrutiny.</p> <p>For example, in the US, state and federal regulators, including the FDIC, <a href="http://www.wsj.com/articles/greater-scrutiny-looms-for-bank-online-lender-rent-a-charter-deals-1471824803">are eyeing new guidelines</a> that would allow greater oversight of online lenders.</p> <p>If they become subject to more regulation, these upstart non-bank lenders could see many of the advantages they've used to gain market share slip away, making it easier for banks to compete for loan business once again.</p> <p>That could be good news for banks, at least in the short-term, but even if fintechs are saddled with new regulatory burdens, the reality is that <a href="http://www.americanbanker.com/news/bank-technology/what-do-millennials-want-from-banks-everything-nothing-whatever-1079945-1.html">consumer behavior and expectations have changed and continue to change</a>.</p> <p>Banks that want to thrive will need to address this and they can't do that with money alone.</p> tag:econsultancy.com,2008:BlogPost/68214 2016-08-24T14:41:52+01:00 2016-08-24T14:41:52+01:00 40% of banks in the US have registered a .bank domain Patricio Robles <p>Only verified banks and savings associations are permitted to register .bank domains, and registrants are required to adhere to "enhanced security" requirements, such as the use of strong encryption.</p> <h3><strong>So how is .bank doing?</strong></h3> <p><a href="http://www.bna.com/banks-flock-newbank-n73014446420/">According to</a> Bloomberg Law, 2,883 banks have registered nearly 6,000 .bank domains since the gTLD went live in mid-2015. </p> <p>fTLD Registry Services' Craig Schwartz says that that amounts to "a slightly better than 40% market penetration of banks that have bought .bank domain names" in the US.</p> <h3>Adoption versus use</h3> <p>Schwartz says that of the banks that have registered .bank domains, "a couple of hundred" have actually migrated to use a .bank domain.</p> <p>One such bank is Lead Bank, a three-branch bank located in Missouri, which migrated its website from leadbankonline.com to <a href="https://www.lead.bank/">lead.bank</a>.</p> <p>Lead Bank's marketing director, Melissa Beltrame, explained the rationale to Bloomberg Law's Paul Shukovsky:</p> <blockquote> <p>.bank allows differentiation of the bank from a branding perspective, a strategic perspective and a technology perspective. It’s the market perception that community banks lag and have less technology than national banks.</p> <p>It’s to our advantage to adopt .bank, which helps us to start changing that perception.</p> </blockquote> <p>Beltrame indicated that there were concerns about the effects the migration might have on the bank's brand equity, but that "clients understood why we were making the migration and came right along with that."</p> <p>She did not comment on any SEO effects.</p> <p>Despite the fact banks have been slow to put .bank domains into real-world use, fTLD Registry Services' Schwartz is confident that other banks will follow Lead Bank's lead and believes 2017 will be a "tipping point."</p> <p>In an effort to speed the process, Schwartz says his organization is working with banks to assist them with migration plans. </p> <h3>Low recognition of new TLDs a challenge despite security concerns</h3> <p>With hacking and identity theft on the rise, the security value proposition of the .bank gTLD is obvious.</p> <p>But banks considering a switch from .com to .bank will have to contend with comparatively low recognition of new gTLDs.</p> <p>While recognition is up in 2016 versus <a href="https://econsultancy.com/blog/66557-new-top-level-domains-struggle-for-recognition/">2015</a>, awareness in North America is still well under 50% <a href="https://www.icann.org/news/announcement-2-2016-06-23-en">according to ICANN's latest study</a>, a far cry from the 95% awareness of .com. </p> <p>What's more, despite increased awareness, reported visits to new gTLDs have actually declined in the past year.</p> <p>Large banks like Barclays, <a href="https://econsultancy.com/blog/67789-five-companies-using-branded-top-level-domains-tlds-why/">which actually has its own brand TLDs</a>, .barclays and .barclaycard, might be able to overcome the recognition challenge.</p> <p>But expect smaller institutions, which don't have huge marketing budgets and may lack the technical expertise needed to ensure their website migrations go smoothly, to take a wait and see approach.</p> tag:econsultancy.com,2008:RoundtableEvent/827 2016-08-10T11:52:32+01:00 2016-08-10T11:52:32+01:00 Digital Transformation: Developing a Customer Centric Culture <p style="border: 0px; vertical-align: baseline;"><strong style="border: 0px; font-style: inherit; font-variant: inherit; vertical-align: baseline;">Aimed at those leading transformation initiatives</strong>, our <a style="border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; color: #004dcc; font-variant: inherit;" href="https://econsultancy.com/training/digital-transformation/">Digital Transformation</a> roundtable series is designed to give you both insight into the trends and findings from our latest research, and the opportunity to discuss with your peers the issues you’re facing.</p> <h3 style="border: 0px; vertical-align: baseline; color: #004e70;"><strong style="border: 0px; font-style: inherit; font-variant: inherit; vertical-align: baseline;">Agenda</strong></h3> <p>To be added shortly </p> tag:econsultancy.com,2008:TrainingDate/2961 2016-08-10T05:00:41+01:00 2016-08-10T05:00:41+01:00 Econsultancy's Certificate in Digital Marketing & Google AdWords Qualified Individual Certification - Singapore <h3><strong>Course benefits</strong></h3> <p>Econsultancy and ClickAcademy Asia are proud to launch the first world-class Certificate in Digital Marketing programme in Singapore catering to senior managers and marketing professionals who want to understand digital marketing effectively in the shortest time possible. Participants who complete the programme requirement will be awarded the <strong>Econsultancy's Certificate in Digital Marketing</strong> and <strong>Google AdWords Qualified Individual</strong> <strong>Certificate</strong>.</p> <p>The double certification programme is uniquely positioned to deliver these benefits:</p> <ul> <li>Course content and curriculum provided by Econsultancy of UK, the world leading digital marketing best practice community and publisher with 250,000+ subscribers</li> <li>Certification in Google AdWords, a highly sought-after professional qualification by Google for digital marketing professionals</li> <li>3 free credits to download 3 Econsultancy reports (worth USD695/report) from Econsultancy's portal containing 500,000+ pages of digital marketing resources, reports and best practice guides</li> <li>Short 8-week course with lesson once or twice a week</li> <li>Practical and real-life training by certified digital marketing practitioners</li> <li>Conducted locally in Singapore with ‘live’ face-to-face training, and not webinars or online learning</li> </ul> <h3>Econsultancy's Reports (Complimentary)</h3> <p>FREE 3 Credits to download Econsultancy's reports from Econsultancy's <a href="https://econsultancy.com/reports/">portal</a> containing 500,000+ pages of digital marketing resources, reports and best practice guides.</p> <h3><strong>Course Details</strong></h3> <p>This double certification course is a 8-week part-time programme for working professionals who intend to upgrade their knowledge in digital marketing. Upon successful completion of the programme, participants will obtain a double certification, and are awarded the Certificate in Digital Marketing (powered by Econsultancy) and the Google AdWords Individual Qualification. </p> <p>This is a part-time programme with 64 contact hours (total 8 days) spread over 8 weeks. Participants will only be certified after passing the Google AdWords exams and the digital marketing project, and complete at least 52 contact hours. </p> <p>The part-time programme covers topics ranging from the overview of digital marketing, customer acquisition channels to social media marketing. </p> <p><strong>Start Date:</strong> 11 Oct 2016</p> <p><strong>Venue:</strong> Lifelong Learning Institute, Singapore, #04-02</p> <p><strong>Course Fee:</strong><strong> SGD 5,880/pax</strong><br>(SGD2,000 discount for Econsultancy’s paying subscribers at SGD 3,880/pax.)</p> <p>To find out more and register, click <a href="http://www.clickacademyasia.com/wp-content/uploads/2016/06/doublecert-brochure-sg-my-2H2016.pdf" target="_blank">here</a>.</p> <h4>For enquiries, please contact us<strong> </strong>at +65 6653 1911 or email<strong> <a href="mailto:%20apac@econsultancy.com" target="_blank">apac@econsultancy.com</a></strong> </h4> tag:econsultancy.com,2008:Report/4209 2016-08-01T10:15:00+01:00 2016-08-01T10:15:00+01:00 Marketing in the Age of Artificial Intelligence <p>Artificial intelligence is able to bring together disparate data, platforms and technology to deliver against the ever-rising customer expectations. Consequently, marketers must continue to adapt. Indeed, they will need to adapt their jobs as all roles will be impacted by artificial intelligence, from creative directors to CMOs to advertising executives.</p> <p>This is not the stuff of Hollywood films where menacing robots drive out humans, but the practical stuff of task-based artificial intelligence: narrowly focused powerful capabilities that artificial intelligence offers to marketers right now.</p> <p>To thrive and survive in the AI revolution, marketers should engage with AI and not avoid it.</p> <p>The <strong>Marketing in the Age of Artificial Intelligence</strong> report aims to demystify <strong>what AI is now and could be in the future</strong>, explaining why its adoption is driven by customer behaviour and why you should be thinking about artificial intelligence now.</p> <p>The report also includes suggestions about how marketers can begin to engage with AI to gain a better understanding of its impact.</p> <h2>What you’ll learn</h2> <ul> <li>What artificial intelligence is and is not.</li> <li>Why the age of artificial intelligence is upon us.</li> <li>How artificial intelligence is changing customer behaviour.</li> <li>How marketer behaviour should change.</li> <li>What to expect next from artificial intelligence.</li> </ul> <h2>Who should read this report?</h2> <p>This guide has been written primarily for C-suite and marketers but is equally applicable to advertising or marketing teams.</p> tag:econsultancy.com,2008:BlogPost/68112 2016-07-28T03:00:00+01:00 2016-07-28T03:00:00+01:00 Five things you should know about digital Japan Jeff Rajeck <p>..outrageous fashion...</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/7404/fashion-blog-flyer.jpg" alt="" width="470" height="472"></p> <p>(image via <a href="https://www.flickr.com/photos/istolethetv/4735451442/">istolethetv</a>)</p> <p>...a challenging sense of design...</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/7405/anime-blog-flyer.jpg" alt="" width="470" height="353"></p> <p> ...and famously strange TV shows.</p> <p> <img src="https://assets.econsultancy.com/images/resized/0007/7406/bear-blog-flyer.jpg" alt="" width="470" height="307"></p> <p>So what about digital?  In a world where cultures becoming increasingly alike due to digital media, does Japan stand out in any way?</p> <p>Econsultancy's latest publication, <a href="https://econsultancy.com/reports/the-japan-digital-report/">The Japan Digital Report</a>, aims to find out. In the report, we look at Japan's demographics, digital readiness, social media, search engines, and ecommerce sites to get a detailed picture of just where Japan is at, digitally.</p> <p>We found that there are many fascinating aspects of Japan's digital culture.  Here are five things that you should know about first.</p> <h3>1) Japan has its own social network</h3> <p>Any meaningful discussion of digital in Japan has to start with its homegrown social network, LINE.</p> <p>LINE rose to prominence during Japan's 2011 tsunami crisis as many used the network to communicate with loved ones when normal phone communication failed.</p> <p>Since then, however, <strong>LINE has become ubiquitous in Japan</strong> providing its users with chat, voice and video chat, a personal timeline, games, branded<a href="https://assets.econsultancy.com/images/0007/7407/pic-2016-07-25-12-01-24.jpg"> channels, and many more features.</a></p> <p><img src="https://assets.econsultancy.com/images/0007/7407/pic-2016-07-25-12-01-24.jpg" alt="" width="716" height="409"></p> <p>The network still enjoys significant growth quarter-on-quarter and it is commonly said that <strong>anyone in Japan who is 'on social media' is on LINE.</strong></p> <p><img src="https://assets.econsultancy.com/images/resized/0007/7409/pic-2016-07-25-12-05-44-blog-flyer.png" alt="" width="470" height="270"></p> <p>One testament to LINE's popularity is that the company IPO'd in the US and Japan in July 2016 and shares shot up 50% on the first day.</p> <h3>2) Facebook is popular, too, and used for business</h3> <p>Facebook was launched in Japan in 2008, but as of 2011 its reach, 2 million, was still relatively low.</p> <p>The social network also came into its own during the 2011 tsunami. Because Facebook, unlike other social networks, requires real names, <strong>Japanese Facebook users could see that distant friends or colleagues were OK after the disaster without having to ask them directly</strong>.</p> <p>Its popularity soared following the disaster and it has seen consistent growth ever since.</p> <p><img src="https://assets.econsultancy.com/images/0007/7410/facebook.png" alt="" width="640" height="400"></p> <p>Now, <strong>Facebook is used in Japan for business networking as well as social networking.</strong></p> <p>Speculation is that Facebook has taken LinkedIn's place in this regards because it is unusual for the Japanese to post career accomplishments and ambitions as members are encouraged to do on LinkedIn. So, because Facebook has real names, the platform serves as a less obvious way of making and maintaining professional contacts.</p> <h3>3) Yahoo! Japan is still very much alive</h3> <p>As most are aware by now, Yahoo has been sold to Verizon in the US.  The site however, is not wholly owned by Yahoo and <strong>so Yahoo Japan will not be transfered to Verizon after the sale of Yahoo in the US.</strong></p> <p><img src="https://assets.econsultancy.com/images/0007/7411/yahoo.png" alt="" width="800" height="156"></p> <p>Yahoo Japan has built up a strong independent brand and <strong>competes head-on with Google for monthly active users (MAUs)...</strong></p> <p><img src="https://assets.econsultancy.com/images/0007/7412/pic-2016-07-25-12-18-09.png" alt="" width="471" height="280"></p> <p>...and has more ecommerce traffic than any other site in the country.</p> <p><img src="https://assets.econsultancy.com/images/0007/7413/pic-2016-07-25-12-20-37.png" alt="" width="507" height="365"></p> <p>Yahoo Japan also currently enjoys double-digit year-on-year growth in overall monthly active users.</p> <h3>4) Bots are already up and running in Japan</h3> <p>2016 has been a banner year for applications which provide a chat interface to an ecommerce or information service - <a href="https://econsultancy.com/blog/67894-what-are-chatbots-and-why-should-marketers-care/">commonly known as bots.</a>  Most compaines, however, have yet to do anything at all on the various bot platforms and so bots may well end up to be the biggest vapourware story of the year.</p> <p>In Japan, however, <strong>LINE already has a bot plugin for brands</strong>, a test network for developers, and a number of live bots already in use. </p> <p><img src="https://assets.econsultancy.com/images/0007/7414/dominos.png" alt="" width="800" height="262"></p> <p>Domino's Pizza Bot is one example which has taken a reported 100 million yen (around $1 million) in orders already. Those interested in building a LINE bot for Japanese consumers can get started by applying for access (in English) at the <a href="https://partner.line.me/en">LINE partner site</a>.</p> <h3>5) Virtual stickers are what's hot there, though</h3> <p>If you asked a typical LINE user about what was hot on LINE, though, most would say one word - stickers. Virtual stickers are similar to emojis in that they are used to share emotions in an unusual or fun way.</p> <p><img src="https://assets.econsultancy.com/images/0007/7415/stickerw1.png" alt="" width="800" height="200"></p> <p>LINE, however, has capitalized on their popularity on the network and allowed brands to design their own custom stickers (for a considerable fee, of course!)</p> <p><img src="https://assets.econsultancy.com/images/0007/7416/dove2.png" alt="" width="536" height="371"></p> <p>The benefit for brands, though, is that <strong>LINE stickers can both deliver the brand message and help their fans extend the brand message to their friends.</strong></p> <p>LINE stickers also have the added benefits of being short-lived and difficult-to-get outside of a campaign's home country.  This scarcity makes the stickers distribution even more likely by LINE members seeking cultural cachet.</p> <h3>So...</h3> <p>So, why do some Japanese dress outrageously and why do they have some of the world's most 'interesting' TV shows?  We are not entirely sure.</p> <p>We do know, however, that <strong>Japan has a diverse media landscape and many opportunities for brands to reach their audience in the country digitally</strong>. The Japan Report will provide you will the base facts, statistics, and insights you need to start figuring out this fascinating country. </p> <p>If you'd like to know more about Japan, then Econsultancy subscribers can <a href="https://econsultancy.com/reports/the-japan-digital-report/">download the report here</a>.</p> <p>And if you're not a subscriber, then you can <a href="https://econsultancy.com/subscription-plans/">find out more about subscriptions here</a>.</p> tag:econsultancy.com,2008:BlogPost/68102 2016-07-27T14:02:00+01:00 2016-07-27T14:02:00+01:00 Why there should be more plaudits for digital audits Chris Bishop <p>Those at the top of organisations don’t feel they have the strategic sweep to justify the time and effort required to commission them.</p> <p>Audits are viewed at times as a little “too tactical” or only done once every blue moon by agencies aiming to impress for your business, only to then collect dust on top of Econsultancy buyers guides print outs or even your old New Media Age magazines (<strong>Ed</strong>: We let this lie, but only to show we have a sense of humour).</p> <p>For the in-house Head of Ecommerce, requesting a digital audit might sound dangerously like a turkey voting for Christmas. </p> <h3>Are we selling audits wrongly?</h3> <p>Or is it the slightly cheesy marketing of website or marketing auditors themselves that is putting people off?</p> <p>All that tired ‘digital health check’ stuff might be the kind of foot in the door tactic that make brands feel suspicious of then giving access to their precious AdWords account, <a href="https://econsultancy.com/blog/67171-what-is-affiliate-marketing-why-do-you-need-it/">affiliate network</a> or analytics suite.</p> <p><img src="https://assets.econsultancy.com/images/0007/7503/healthcheck.jpeg" alt="health check" width="275" height="183"></p> <h3>How important are digital audits anyway?</h3> <p>In reality, though, digital audits are absolutely vital. And third party objective auditing ensures that you’re not marking your own home work or ignoring long term problems.</p> <p>Proper auditing, UX testing and <a href="https://econsultancy.com/blog/67473-seven-conversion-rate-optimization-trends-to-take-advantage-of-in-2016/">CRO analysis</a> means you can elongate the lifetime and effectiveness of your website and digital media activity, in a way that can be done on any budget.</p> <p>Your digital real estate is often an expensive investment - you’ve got to maintain it properly to get results.</p> <h3>Regular servicing is vital</h3> <p>Think of that shiny new website you’ve just spent months developing as a new car you’ve just acquired.</p> <p>To start off with, it’s the envy of everyone who sees it. After-sales support is pretty good and you can see years of trouble free motoring ahead of you. Before you know it, though, your warranty is up and you’re on your own.</p> <p>As the car ages, small problems become big problems. It performs less effectively. You’re paying for petrol, but it’s becoming less and less economical to run. There are so many things going wrong with it you don’t know where to start. Eventually the car's value is so diminished you might as well scrap it and buy a new one.</p> <p>It’s the same with websites and digital marketing campaigns. They can’t be left to look after themselves – and even the mechanic themselves might need some fine tuning or training themselves.</p> <p><img src="https://assets.econsultancy.com/images/resized/0007/7504/service-blog-flyer.jpg" alt="car service" width="380"></p> <h3>What a digital audit can do for you </h3> <p>Audits can show you how to balance your budget more effectively through action and prioritisation. They can identify common issues like plateaus in activity and drop offs in acquisition; all the elements that reduce profitability. </p> <h3>The Lessons of the Audit</h3> <p>Constantly learn, constantly improve, constantly trade! A timely and constructive audit will help you:</p> <ul> <li>Keep up to date with the latest channel trends - Google changes, new publishers in affiliate, new platform or techniques for social. </li> <li>Use competitor analysis to keep your enemies close! It’s crucial to analyse and understand market share/spend and its consequences for your brand. </li> <li>Help you (re)define your goals.</li> <li>Confirm your objectives or KPIs so you can measure success.</li> <li>Understand new opportunities.</li> <li>Benchmark improvements or conversely measure areas of decline.</li> <li>Ensure corporate compliance – its best practice to have someone external “rubber stamp” your activity.</li> <li>Encourage serendipity – the uncovering of that nugget of information that transforms your understanding and makes the commercial difference.</li> </ul> <h3>Should you take the plunge?</h3> <p>Regular and skilled digital auditing is a detailed and never ending task.  It can transform the effectiveness of your digital advertising, website and budget.  </p> <p>Is it sexy? It’s showing your website a lot of love and attention. It’s optimizing and maximizing your marketing profitability and performance. Sounds pretty sexy to me.</p> <p><em>More on auditing:</em></p> <ul> <li><a href="https://econsultancy.com/blog/68031-answering-the-key-question-of-content-auditing-where-do-i-start/">Answering the key question of content auditing - where do I start?</a></li> </ul> tag:econsultancy.com,2008:BlogPost/68088 2016-07-26T14:26:00+01:00 2016-07-26T14:26:00+01:00 How can digital brands adapt content strategy for high growth markets? Marco Veremis <p>With three billion content-hungry consumers, high growth markets offer exactly this. In fact, according to Upstream’s <a href="http://www.developingtelecoms.com/tech/apps-content-ott/6483-amazon-eyes-up-emerging-markets-for-next-growth-opportunity.html">2016 Developing Markets Mobile Commerce report</a>, there is an estimated $70bn revenue opportunity on offer.</p> <p>Not only is there a desire for digital services and a willingness to pay, but with the purchasing power of consumers also increasing, emerging markets are a truly viable option for brands.</p> <p><a href="http://www.wsj.com/articles/netflix-expands-to-190-countries-1452106429">The expansion of Netflix</a> to a further 130 countries earlier this year suggests these markets are beginning to be identified for their revenue potential, but digital content brands still have a long way to go before they are truly maximising the opportunity available.</p> <p>Whilst Netflix recorded <a href="http://www.theverge.com/2016/4/18/11454362/netflix-q1-2016-earnings-81-million-subscribers">double the number of subscribers in Q1</a> this year compared to 12 months earlier, it has also projected a slowdown in new subscribers for Q2, suggesting more needs to be done to engage consumers.</p> <p>Understanding the <a href="https://econsultancy.com/reports/quarterly-digital-intelligence-briefing-the-quest-for-mobile-excellence/">mobile-first markets</a> and the habits and preferences of those within them is critical. For the likes of Netflix, it’s clear that taking a one-size-fits-all approach based on the practices followed in Western markets is not going to deliver long-term success.</p> <p>Whilst there is an appetite for digital content services, this is simply not enough to drive revenue growth. Recognising the environmental and cultural limitations and adapting accordingly is going to be key for any brand looking to extend its reach.</p> <p>So, how can brands such as Amazon Prime and Netflix ensure they approach high growth markets fully prepared, to maximise the viable revenue opportunities on offer?</p> <p><img src="https://assets.econsultancy.com/images/0005/9222/Screen_Shot_2015-02-06_at_11.13.14.png" alt="netflix" width="615"></p> <h3>Make digital services affordable</h3> <p>The economic intricacies of each emerging market means digital providers will need to adopt <a href="https://econsultancy.com/blog/67699-how-online-retailers-can-improve-price-optimization-strategies/">pricing strategies</a> that take into consideration the huge gaps in GDP, compared to developed markets in the West.</p> <p>The total cost of services needs to be affordable, taking into account both the initial cost of purchasing the service and the ensuing on-going cost of using it.</p> <p>In terms of the initial cost for purchasing its service, for example, while Netflix introduced pricing in Brazil that is 39% lower than that in the US, it is worth bearing in mind that the income differential in other emerging markets can be as much as 94% lower compared to the US.</p> <p>It is therefore necessary for brands to set pricing in line with purchasing power, adjusted to the local currency.</p> <p>In addition to the initial cost of purchasing a digital service, streaming and mobile data charges are also costs consumers need to bear. For the average consumer in an emerging market, streaming costs use five times more of their monthly income, compared with the corresponding percentage of the average US consumer’s monthly income.</p> <p>Therefore it should come as no surprise that the majority (87%) of consumers accessing digital services on mobile devices in high growth markets, demand lower data charges.</p> <p><a href="https://media.netflix.com/en/company-blog/netflix-introduces-new-cellular-data-controls-globally">Netflix just released a new tool</a> to help people avoid costly bills for high data use when viewing streamed television shows on mobile devices, which indicates that it is taking steps to overcome this.</p> <p>Another approach brands can take is to create an affiliation with local mobile operators to offer bundles that reduce charges for consumers. Brands may also need to reconsider monthly subscription offers in emerging markets as pay cycles can be much shorter, often weekly.</p> <p>Understanding the specifics of the market will enable brands to develop a proposition that suits the behaviour of the consumers they are trying to engage.</p> <p><img src="https://assets.econsultancy.com/images/0007/7461/cellular_data_usage_netflix.png" alt="netflix data usage feature" width="450"></p> <p><em>Netflix's new cellular data usage tool</em></p> <h3>Keep content ‘Lite’ to make it accessible</h3> <p>Digital brands that make their content as accessible as possible on mobile devices can perform better in developing markets.</p> <p>In high growth markets, 61% of consumers report internet connectivity as still being slow and unreliable, with intermittent Wi-Fi, which means accessing digital content is reliant on mobile data. One option for brands to consider is to provide ‘lite’ versions of services, which use less data.</p> <p>Additionally, it’s important to remember that digital commerce isn’t solely focused on apps. Research shows that consumers are accessing content via mobile web browsers more than apps (43% vs 40%).</p> <p>SMS and MMS messages <a href="https://econsultancy.com/blog/67108-is-sms-the-most-underrated-and-overlooked-dark-social-channel/">also still play a role</a> for some services, so shouldn’t be discounted.</p> <p>With this is mind, brands should not be too reliant or restricted to apps but instead deliver content through multiple delivery channels where possible to ensure they reach 100% of the population.</p> <h3>Deliver localised content</h3> <p>Before launching digital offerings in emerging markets, brands must first do their due diligence to understand what type of services are missing and develop content that truly meets consumers wants and needs.</p> <p>Providing content and services that are compelling, have a local feel and are available in native languages will be important for brands.</p> <p>Whilst there is a demand for international content in emerging markets, 76% of consumers have a strong preference for content and services to have a sufficient local feel, in terms of language and cultural nuances.</p> <p>Netflix recently announced a move towards <a href="http://www.businessfinancenews.com/25950-netflix-inc-to-cater-to-indian-market-with-original-bollywood-content/">producing exclusive Bollywood content</a> for the Indian market and also added <a href="http://www.telegraph.co.uk/technology/2016/03/26/inside-netflix-how-reed-hastings-is-building-the-first-global-tv/">Arabic, Korean and Chinese</a> to the 17 other languages it already supports.</p> <p>This willingness to adapt to the local market and deliver content that appeals to the consumers is something digital brands such as Amazon Prime will have to prioritise if they hope to truly take advantage of the $70 billion digital opportunity on offer.</p> tag:econsultancy.com,2008:Report/4200 2016-07-21T11:05:00+01:00 2016-07-21T11:05:00+01:00 Measurement and Analytics Report 2016 <h2>Overview</h2> <p>Never have marketers, analysts and ecommerce professionals had more data to work with as part of their ongoing efforts to improve business and organisational performance.</p> <p>At the same time, the growing challenge for individuals and organisations alike has been to avoid being overwhelmed by proliferating sources of data and metrics across a burgeoning number of marketing channels and technology platforms.</p> <p>The <strong>Measurement and Analytics Report 2016</strong>, produced by Econsultancy in partnership with analytics consultancy <strong><a href="http://www.lynchpin.com/">Lynchpin</a></strong> for the ninth year running, looks at how organisations are using data strategically and tactically to generate insights and to improve business performance.</p> <p>The research, based on a survey of almost 1,000 digital professionals, also focuses on the important role for data and analytics in supporting their attempts to build a competitive advantage by becoming more customer-centric.</p> <h2>What you'll learn from this research</h2> <ul> <li>Understand how analytics can help to meet financial goals and what the most common growth and profit-related requirements are.</li> <li>Discover how organisations are using data and analytics to build a competitive advantage by becoming more customer-centric.</li> <li>Benchmark the make-up of your analytics or data team and investment plans against those of your peers.</li> <li>Find out where the biggest analytics skills gaps are and what the most common challenges related to deploying tools and technologies organisations face.</li> </ul> <h2>Key findings from the report</h2> <ul> <li>The vast majority (84%) of marketers agree that their understanding of the customer is increasing over time, and 64% say that they are using data-driven customer insights to adapt their marketing strategies and influence business decisions.</li> <li>Despite the increasing importance of data, the proportion of analytics data used to drive decision-making within the organisation dropped by seven percentage points compared to last year's survey.</li> <li>While 77% of marketers believe digital analytics important to their company’s digital transformation, fewer than one in five consider digital reporting to have a ‘very influential’ role in supporting business decisions.</li> </ul> <h2>Features of the report</h2> <p>Based on a survey of almost 1,000 digital business professionals, this report also aims to cut through the noise to understand how companies are using measurement and analytics to boost revenue and profit growth, while also looking at the types of technology and data which are used to meet these ends.</p> <p><strong>Download a copy of the report to learn more.</strong></p> <p>A <strong>free sample</strong> is available for those who want more detail about what is in the report.</p> tag:econsultancy.com,2008:BlogPost/68040 2016-07-19T13:40:00+01:00 2016-07-19T13:40:00+01:00 Five digital strategy tips for mono-brands that wholesale and sell direct to consumer Ben Potter <p>For many businesses, the wholesale route allows the brand to build awareness via retail partners, such as department stores, but at the expense of margin and the ability to form a direct relationship with the end customer.</p> <p>At some stage, the brand will decide the time is nigh to create a direct proposition. However, this presents a number of challenges in the digital marketing space that are often not understood or properly considered from the outset.</p> <p>Having worked with a number of mono-brands over the years, here are a few things we’ve observed and helped them overcome:</p> <h3>1. You must give people a compelling reason to buy direct</h3> <p>By the time a typical mono-brand goes direct, they are likely to have a number of well-known, trusted stockists selling their wares online (normally with much deeper pockets).</p> <p>This means that the mono-brand is, in effect, competing against themselves online, via those stockists. The customer is therefore presented with choice as to where they buy that brand.</p> <p>Last year, we <a href="http://www.leapfrogg.co.uk/froggblog/2015/07/insight-edit-consumers-favour-multi-brand-retailers-over-single-brands/" target="_blank">questioned our consumer panel</a> on this very topic - <strong>89% of respondents stated they favoured buying from multi-brand retailers over single-brand sites.</strong></p> <p>When pressed a little further, of those that preferred buying from single brand sites, 71% stated it was because the brand makes them feel more valued as a customer.</p> <p>Added value is therefore the key to driving conversion on the brand site - the promise that if a customer buys direct, they are buying into more than just the product itself.</p> <p>This is where the brand has an advantage. Getting to <a href="https://econsultancy.com/blog/67526-how-retail-marketers-can-ensure-they-deliver-the-right-customer-experience/" target="_blank">know the customer intimately</a>, what it is they value and then delivering on this is something that a multi-brand retailer, such as John Lewis, <strong>cannot replicate, at scale, for each and every brand they stock. </strong>Some get the specialist treatment but even then the breadth of content is fairly limited.</p> <p>For example, despite Levi’s being a ‘featured brand’ on the John Lewis website, content is limited to a brief overview of the brand, a few images and a men’s fit guide (strangely, in the women’s section with a link that didn’t work at the time of writing).</p> <p><img style="vertical-align: middle;" src="https://assets.econsultancy.com/images/0007/7209/Capture.jpg" alt="John Lewis Levi's category page" width="526" height="489"></p> <p><br> Ultimately, as THE brand, you need to be able to answer (and act upon) one, fundamental question;</p> <p><strong><em>‘Why would someone buy from our site as opposed to an established multi-brand retailer?’</em> </strong></p> <p>If you can’t, then you need to go back to the drawing board.</p> <h3>2. Make it your mission to ‘own’ organic search results for brand terms</h3> <p>The remit of an ecommerce manager is to grow the direct channel, which of course yields a number of benefits compared to the wholesale model (control, acquiring data, building a relationship with the end customer and so on).</p> <p>Search will be a key part of the strategy. <strong>Occupying as much of the search ‘real estate’ for brand terms, as possible, should be the aim.</strong></p> <p>To what extent you can do so will ultimately depend on how many retailers stock your products and how sophisticated their natural search strategies are. The more stockists you have, the more competitive the search results are likely to be for brand terms.</p> <p>Utilising site links, <a href="https://econsultancy.com/blog/64778-what-is-schema-markup-and-why-should-you-be-using-it/">schema mark-up</a>, My Business pages, reviews, social media profiles and optimising rich-media assets, such as images and video, are just some of the means by which you can occupy a greater share of the search results for brand terms, at the expense of stockists, as highlighted by Sony below:</p> <p><img style="vertical-align: middle;" src="https://assets.econsultancy.com/images/0007/7211/Capture3.png" alt="Sony Google search result" width="532" height="597"></p> <p><br> Please note, there is often a balancing act between aggressively growing the direct channel and keeping stockists on side. Stealing share from stockists is inevitable so needs to be carefully managed.</p> <h3>3. You will almost certainly have to pay for brand PPC traffic</h3> <p>Assuming stockists are present in paid search and bidding on your brand name, you will have to do likewise. There are a million and one articles debating the pros and cons of bidding on your own brand terms so I won’t repeat those arguments.</p> <p>Instead, a slightly different take on the issue, born out of a recent client conversation. Despite the presence of some fairly small but aggressive stockists, the client in question was determined not to bid on their brand terms, due to two questionable assumptions.</p> <p>Firstly, they felt that searchers would, by default, seek out their organic listing. Some no doubt will.</p> <p>However, we demonstrated that other searchers were distracted by a compelling ad from one of their stockists and therefore didn’t even think about scrolling down to find the brands organic listing. Opportunity lost.</p> <p>Secondly, they assumed that if somebody searched for their brand, then that searcher would go onto purchase one of their products (whether direct or via a stockist). However, with some qualitative insight, this was proven not always to be the case.</p> <p>The presence of a multi-brand retailer meant that some were distracted by the greater choice on offer, going onto buy a different brand altogether. Again, opportunity lost.</p> <p><strong>By being present in the paid listings, ideally by being as aggressive as you can to own the number one position, you give yourself the greatest chance of getting the click.</strong></p> <p>This is especially important on mobile where it is common for only ads to appear ‘above the fold’.</p> <p><img style="vertical-align: middle;" src="https://assets.econsultancy.com/images/0007/7210/capture2.png" alt="Search results on mobile" width="330" height="583"><br> </p> <p>Therefore, paid search is increasingly the only way in which you can guarantee a presence on the devices searchers are most likely to be using and where they are most likely to click. Don’t leave money on the table.</p> <h3>4. Getting the price right is more important than ever</h3> <p>We worked with a brand where you could consistently purchase many of their products from a well-known high street retailer for 30% less than the price on the brand site. But we were tasked with significantly growing direct revenue. Errr…</p> <p>Consumers are savvier than ever. <strong>With the prominence of Google Shopping listings, price information is thrust upon eager searchers without them even having to click.</strong></p> <p><img style="vertical-align: middle;" src="https://assets.econsultancy.com/images/0007/7212/Capture4.png" alt="Nike Internationalist shopping results" width="481" height="231"><br> <br>Whilst some consumers will of course buy from the brand site and be loyal in doing so again in the future, others won’t give two hoots where they purchase. In fact, if I can buy your product at the same time as all the other stuff on my John Lewis ‘wish list’, all the better.</p> <p>Whilst you cannot dictate the prices your stockists choose to sell at, you need to be aware of their pricing strategy and be agile enough to react should you choose to, particularly during sale periods.</p> <p>It was put to me by a brand in the past that “our stockists can have those ‘sale only’ customers”. Fair enough but I’d always prefer to acquire any customer direct, sale only or not, and nurture the relationship.</p> <p>This brings to light an interesting point regarding loyalty. It should not be measured only in monetary terms. We have discovered that some of our clients’ most loyal customers are not necessarily those that spend the most money.</p> <p>Perhaps these customers can only afford to shop with the brand once or twice a year. However, they are the ones that shout the most about their purchase, something that is often not measured or harnessed.</p> <p>You therefore need to look beyond financial data and models, such as <a href="https://econsultancy.com/blog/64481-finding-your-best-customers-with-the-rfm-matrix/" target="_blank">RFM</a> when it comes to understanding loyalty.</p> <h3>5. Make sure your direct and wholesale teams are talking to one another</h3> <p>I spoke to a premium menswear brand last year looking to grow their direct channel. ‘Super!’ I thought, we can help. However, as we dug a little deeper, we soon realised it was going to be a huge challenge.</p> <p>We discovered that the wholesale team had some pretty aggressive targets of their own, meaning they were selling into an ever-increasing number of retailers. Worse still, many of these retailers were at the lower end of the market, damaging brand perception.</p> <p>The direct team also had some rather juicy numbers to hit for the next financial year. But nobody internally had joined the dots, namely that the direct team would find themselves gradually hamstrung by increased competition in search as stockists optimised their sites and bid on brand terms.</p> <p>This highlights how <strong>the wholesale and direct strategy have to be working in unison.</strong></p> <p>Growing both channels simultaneously is possible but requires careful planning, great communication and an understanding of how the two will play out online, especially in search. </p><p><strong>Have you worked with or for a mono-brand? What challenges did you experience? Please feel free to share below.</strong></p>